Athene Preferreds: Why Series D Outperforms After the Series C Redemption

The redemption of Athene's Series C preferred stock in June 2025 marked a pivotal shift in the company's capital allocation strategy, reshaping the relative value proposition of its remaining preferred share classes. As investors assess the post-redemption landscape, Series D has emerged as the standout performer, outpacing its counterparts through a combination of yield stability, strategic capital reallocation, and Apollo Global's robust financial backing. This analysis delves into the mechanics of Athene's capital restructuring and explains why Series D now holds a compelling edge in the preferred stock lineup.

Post-Series C Redemption: A Strategic Capital Overhaul

Athene's decision to redeem all 24 million outstanding Series C preferred shares at $25.00 per depositary share ($25,000 per full share) on June 30, 2025, was a calculated move to streamline its capital structure. The redemption eliminated a 6.375% fixed-rate reset perpetual non-cumulative preferred stock series, freeing up capital for more strategic uses. With total assets exceeding $380 billion as of March 2025, Athene demonstrated the financial flexibility to absorb this $600 million outlay without compromising its operational or investment goals.

The proceeds from the redemption were likely allocated toward debt reduction and new investments, as evidenced by Athene's Q4 2025 block reinsurance transaction with Sony Life in Japan. This move not only diversified Athene's risk profile but also underscored its commitment to leveraging capital for long-term growth. By removing the Series C dividend obligation-annualized at $6.375 per share-Athene redirected resources to its remaining preferred share classes, including Series D, which now benefits from a more optimized capital framework.

Series D's Relative Value: Yield, Price, and Risk Dynamics

Athene's Series D preferred stock (ATH.PRD) has emerged as the preferred choice for income-focused investors, offering a 4.875% fixed-rate perpetual non-cumulative dividend structure. As of October 2025, the stock traded at $17.28, a 30.88% discount to its $25 liquidation preference, translating to a yield of 7.05%. This outperforms Series A (6.35% yield) and Series B (5.625% yield), though it trails Series E's 7.75% yield. However, Series E's higher yield comes with a floating-rate reset mechanism and a 2027 call date, introducing greater reinvestment risk compared to Series D's fixed-rate structure and 2025 call date.

The non-cumulative nature of all Athene preferred shares means missed dividends are not recoverable, but Series D's consistent quarterly payouts- $0.3046875 per depositary share in both Q2 and Q4 2025-signal management's prioritization of this series. This reliability, coupled with Athene's $400+ billion asset base and Apollo Global's financial strength, enhances Series D's credit profile relative to riskier alternatives like Series E.

Capital Allocation and Market Sentiment

Athene's post-redemption capital strategy has also bolstered investor confidence in Series D. The company's Q4 2025 alternative investment portfolio generated a 10% annualized return, contributing $325 million in pre-tax income. This performance reinforces Athene's ability to sustain dividend distributions while pursuing high-return opportunities. Meanwhile, the redemption of Series C reduced equity complexity, potentially lowering future capital costs and improving returns for preferred shareholders.

Market reactions further validate Series D's outperformance. Despite its 2025 call date, the stock's 30.88% discount reflects a balance between yield appeal and call risk, making it more attractive than Series A (callable in 2029) and Series E (callable in 2027) for investors seeking near-term stability. Analysts have consistently ranked Series D as the top preference within Athene's preferred stock lineup, citing its favorable yield-to-risk ratio and Apollo's strong equity coverage over debt.

Conclusion: A Post-Redemption Winner

Athene's Series C redemption was not merely a cost-cutting exercise but a strategic reallocation of capital that elevated Series D's position in the preferred stock hierarchy. By eliminating a higher-cost perpetual obligation and redirecting resources to a more stable, fixed-rate series, Athene has created a compelling value proposition for Series D holders. With its 7.05% yield, Apollo's financial backing, and a capital structure optimized for long-term growth, Series D stands as the preferred choice for investors seeking a balance of income and risk mitigation in the post-redemption era.